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Author Topic: FFP  (Read 496772 times)

Offline ChicagoLion

  • Member
  • Posts: 26215
  • Location: Chicago
  • Literally
Re: FFP
« Reply #3525 on: September 02, 2024, 06:41:07 AM »
Can someone tell me how chelsea are meeting the wages side of FFP? We had to sell diaby to comply and Chelsea's wage bill must be through the roof?

I dont get it. Something stinks

Broad answers:

They brought in about £350m more than us last season, this gives them wiggle room

They don't pay as higher wages as you'd assume, their current strategy is highly incentivised contracts, which clearly won't work out for the 14 players who don't make the squad.

They amortise the costs over the full 5 years, and longer prior to the rule change. Coupled with asset sales, they've been able to get the annual threshold.

The catch comes with; (i) the longer they're unsuccessful in making the top 4, the less they will generate, (ii) every year they make compliance harder by giving themselves less wiggle room. The average club has 80-90 years of accumulative contracts, Chelsea have 191. (iii) player sales are vital to their model. If they become less successful, their players value is likely to drop. (iv) the less successful they are the more they change their manager, adding redundant contract expenses (not meant in employees rights terms).(v) Rule changes around assets being acquired by different entities within the Group box them in.
It’s a good description of the law of diminishing returns.
Gallagher was the last rabbit they pulled out of the hat, it’s hard to see how player sales will continue to generate the profits to compensate for the financial excess.
I believe football is close to hitting or above the sustainable number of highly paid professional players.
In the past the excess has been taken up by Turkey, USA, China and now Saudi but there are limitations on that capacity.

« Last Edit: September 02, 2024, 07:10:40 AM by ChicagoLion »

Offline Demitri_C

  • Member
  • Posts: 12124
Re: FFP
« Reply #3526 on: September 02, 2024, 09:08:28 AM »
Its a tough a one really because there does need to be some regulation otherwise newcastle would just spend 500m odd every summer and blow everyone out of the water.

But at same time they need to take into consideration CL clubs have had a heads start over the rest of us.

So what we need to do is find the sweet spot which stops Newcastle from spending hundreds of millions of pounds to help them consolidate their top four position last year, BUT allows us to spend hundreds of millions of pounds to help us consolidate our top four position this year?

Tricky one.

The only way i see it is if the losses allowed are a bigger number or spread over 5 years as opposed to 3. I think we propoaed option 1 and everyone voted against it even newcastle (which was odd)


Offline Dante Lavelli

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  • Posts: 10749
  • GM : 25.05.2023
Re: FFP
« Reply #3527 on: September 02, 2024, 11:51:37 AM »
Can someone tell me how chelsea are meeting the wages side of FFP? We had to sell diaby to comply and Chelsea's wage bill must be through the roof?

I dont get it. Something stinks

Their income is £500m/season ours is closer to £200m.  the wage bill can be a maximum of 80% turnover or something like that.

Offline paul_e

  • Member
  • Posts: 37160
  • Age: 45
  • GM : July, 2013
Re: FFP
« Reply #3528 on: September 02, 2024, 12:18:35 PM »
Can someone tell me how chelsea are meeting the wages side of FFP? We had to sell diaby to comply and Chelsea's wage bill must be through the roof?

I dont get it. Something stinks

Their income is £500m/season ours is closer to £200m.  the wage bill can be a maximum of 80% turnover or something like that.

Ours was that a couple of seasons ago, last year will be more like £260-270m (there should be about £35-40m from Europe and improved league placings and then some small commercial increase) and with the new kit, sponsor, Champions League, etc I'd hope we're looking at £350m-ish this season.

Still a big gap but another season or 2 of being competitive in the league and qualifying for Europe will have us in a much stronger position.

Offline Demitri_C

  • Member
  • Posts: 12124
Re: FFP
« Reply #3529 on: September 02, 2024, 02:05:49 PM »
Can someone tell me how chelsea are meeting the wages side of FFP? We had to sell diaby to comply and Chelsea's wage bill must be through the roof?

I dont get it. Something stinks

Their income is £500m/season ours is closer to £200m.  the wage bill can be a maximum of 80% turnover or something like that.

Ours was that a couple of seasons ago, last year will be more like £260-270m (there should be about £35-40m from Europe and improved league placings and then some small commercial increase) and with the new kit, sponsor, Champions League, etc I'd hope we're looking at £350m-ish this season.

Still a big gap but another season or 2 of being competitive in the league and qualifying for Europe will have us in a much stronger position.

Hopefully 5th gets CL if that does that would help us at least get CL again as although it appears unlikely we can do it again we are in with a shout as manure and chelsea havent looked great so far

Offline Drummond

  • Member
  • *
  • Posts: 32858
  • Location: Everywhere, and nowhere.
  • GM : 11.10.2025
Re: FFP
« Reply #3530 on: September 02, 2024, 02:28:22 PM »
Can someone tell me how chelsea are meeting the wages side of FFP? We had to sell diaby to comply and Chelsea's wage bill must be through the roof?

I dont get it. Something stinks

Their income is £500m/season ours is closer to £200m.  the wage bill can be a maximum of 80% turnover or something like that.

Ours was that a couple of seasons ago, last year will be more like £260-270m (there should be about £35-40m from Europe and improved league placings and then some small commercial increase) and with the new kit, sponsor, Champions League, etc I'd hope we're looking at £350m-ish this season.

Still a big gap but another season or 2 of being competitive in the league and qualifying for Europe will have us in a much stronger position.

Hopefully 5th gets CL if that does that would help us at least get CL again as although it appears unlikely we can do it again we are in with a shout as manure and chelsea havent looked great so far

Not bothered whether 5th gets it. we'll qualify as winners anyway.

Offline Demitri_C

  • Member
  • Posts: 12124
Re: FFP
« Reply #3531 on: September 02, 2024, 03:00:47 PM »
Can someone tell me how chelsea are meeting the wages side of FFP? We had to sell diaby to comply and Chelsea's wage bill must be through the roof?

I dont get it. Something stinks

Their income is £500m/season ours is closer to £200m.  the wage bill can be a maximum of 80% turnover or something like that.

Ours was that a couple of seasons ago, last year will be more like £260-270m (there should be about £35-40m from Europe and improved league placings and then some small commercial increase) and with the new kit, sponsor, Champions League, etc I'd hope we're looking at £350m-ish this season.

Still a big gap but another season or 2 of being competitive in the league and qualifying for Europe will have us in a much stronger position.

Hopefully 5th gets CL if that does that would help us at least get CL again as although it appears unlikely we can do it again we are in with a shout as manure and chelsea havent looked great so far

Not bothered whether 5th gets it. we'll qualify as winners anyway.

Of the league, CL or both ? 😀


Offline Demitri_C

  • Member
  • Posts: 12124
Re: FFP
« Reply #3532 on: September 03, 2024, 03:47:54 PM »
I just noticed burnley have even jumped on the documentary band wagon with "mission to burnley"

I do wonder if we have gone down this route last season.  I mean that season last year would have made a awesome documentary and given us exposure to help with FFP

Offline dekko

  • Member
  • Posts: 1291
Re: FFP
« Reply #3533 on: September 03, 2024, 03:56:37 PM »
I just noticed burnley have even jumped on the documentary band wagon with "mission to burnley"

I do wonder if we have gone down this route last season.  I mean that season last year would have made a awesome documentary and given us exposure to help with FFP

Apparently we filmed one in the hope of selling it.

Offline Sexual Ealing

  • Member
  • Posts: 22829
  • Location: Salop
Re: FFP
« Reply #3534 on: September 03, 2024, 04:01:37 PM »
I just noticed burnley have even jumped on the documentary band wagon with "mission to burnley"

I do wonder if we have gone down this route last season.  I mean that season last year would have made a awesome documentary and given us exposure to help with FFP

Apparently we filmed one in the hope of selling it.

And the lack of a buyer confirms that, rather than there being an anti-Villa agenda, we're just not that interesting to most people.

Offline eamonn

  • Member
  • Posts: 33706
  • Location: Stay in sight of the mainland
  • GM : 26.07.2020
Re: FFP
« Reply #3535 on: September 03, 2024, 04:08:30 PM »
We can't keep up with the Sunderland Til I Dies or Leeds Are Falling Apart (Again) narrated by Russell Crowe.

Offline Sexual Ealing

  • Member
  • Posts: 22829
  • Location: Salop
Re: FFP
« Reply #3536 on: September 03, 2024, 04:12:39 PM »
We can't keep up with the Sunderland Til I Dies or Leeds Are Falling Apart (Again) narrated by Russell Crowe.

Yeah. 'Sixth-best team in the country finishes two places above sixth' isn't much of a story.

Offline Dave

  • Member
  • *
  • Posts: 47546
  • Location: Bath
  • GM : 16.09.2025
Re: FFP
« Reply #3537 on: September 03, 2024, 04:16:15 PM »
I just noticed burnley have even jumped on the documentary band wagon with "mission to burnley"

I do wonder if we have gone down this route last season.  I mean that season last year would have made a awesome documentary and given us exposure to help with FFP

Apparently we filmed one in the hope of selling it.

And the lack of a buyer confirms that, rather than there being an anti-Villa agenda, we're just not that interesting to most people.

As you know, our thoughts are very much aligned on the whole "the media hate us" silliness, but presumably we wouldn't have been looking for much money?

If it's an in-house production, presumably it's all made and ready to go, with the intention of getting exposure and building a brand *spit*, rather than trying to flog it to the highest bidder to make money.

You'd have thought that Amazon, who are desperate to bulk up their sport offerings, and have Champions League rights this season might have been interested in putting it out there as a "will Villa make the Champions League for the first time in forever, which you can coincidentally watch right here on Amazon Prime" tie in.

I'm not saying they're going to chuck Top Gun: Maverick off the platform to make space for us, but it's wouldn't be the weirdest thing for them to have in their vault for people to watch.
« Last Edit: September 03, 2024, 04:17:46 PM by Dave »

Offline Sexual Ealing

  • Member
  • Posts: 22829
  • Location: Salop
Re: FFP
« Reply #3538 on: September 03, 2024, 04:22:44 PM »
I just noticed burnley have even jumped on the documentary band wagon with "mission to burnley"

I do wonder if we have gone down this route last season.  I mean that season last year would have made a awesome documentary and given us exposure to help with FFP

Apparently we filmed one in the hope of selling it.

And the lack of a buyer confirms that, rather than there being an anti-Villa agenda, we're just not that interesting to most people.

As you know, our thoughts are very much aligned on the whole "the media hate us" silliness, but presumably we wouldn't have been looking for much money?

If it's an in-house production, presumably it's all made and ready to go, with the intention of getting exposure and building a brand *spit*, rather than trying to flog it to the highest bidder to make money.

You'd have thought that Amazon, who are desperate to bulk up their sport offerings, and have Champions League rights this season might have been interested in putting it out there as a "will Villa make the Champions League for the first time in forever, which you can coincidentally watch right here on Amazon Prime" tie in.

I'm not saying they're going to chuck Top Gun: Maverick off the platform to make space for us, but it's wouldn't be the weirdest thing for them to have in their vault for people to watch.

And yet they haven't!

Offline PeterWithesShin

  • Member
  • Posts: 75729
  • GM : 17.03.2015
Re: FFP
« Reply #3539 on: September 03, 2024, 04:31:06 PM »
Maybe it was shit so no one wanted it.

 


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